By

Dhaval Dhruv 7
Gautam Lulla 21
Hardik M Shah 42
Jigar Shah - 44


Response to Threat From
Imitation
Used Economies of scale while producing DRAM and also licensing and
contracts to people for producing DRAM for mass markets
Responded with Intellectual Property protection when AMD and Cyrix
imitated Intel.
Intel tried to produce cheaper and higher capacity micro processors when
there was increased competition from AMD and Cyrix.
It was the largest purchaser of semi conductors ,so as to achieve
standardization.
Good relationship with suppliers. Initially just a single source for supply.
Later switched to Dual suppliers in order to mitigate risk.
Good relationship with complementors like Microsoft which helped them to
provide the customers best service which prevented customers from
switching to another company.
It started project CRUSH and introduced more than 2000 designs for
the customers which show its scope economies strategy for reducing threat
to imitation.

Threat of Hold-Up
Contracting-Intel tried to enter in the market with scale
economies due to which it had many contracts with its suppliers
to provide parts for mass production.
When buyers were more inclined towards RISC architecture,
Intel hedged against adoption of RISC by releasing I-860.It tried
to reduce the bargaining power through intel inside campaign
which made the industry more dependent on CISC architecture.
It also decreased the bargaining power of the buyers by building
the mother board through forward integration and sold to number
of OEMs including Dell, HP, Gateway and Zeos.
Intel also tried to reduce the bargaining power of the suppliers by
not only focusing on long term contract and also on standard
solution rather than custom solution.
Intel also tried to reduce the bargaining power of Microsoft by
investing in its competitors and partnership with Apple ,Linux-
Redhat.
Intel tried to maintain the trust with all complementors and
suppliers i.e the whole value chain.
Threat of Substitution
It is an indirect threat to sustainability. These are even harder to
address than threats of imitation

The life of the microprocessor became very short so they charged a
heavy price for the new products initially and then reduced the price

After the evolution of internet, competitors complementors also
became the complementors of Intel due to their production of
unique products.

It always tried hard to fight strongly with its competitors.

It reduced the number of chips to be produced by licensing
companies which reduced the threat of substitution and also
increased their revenue from 30% to 75%.

It perform short term straddling by strongly competed with Motorola
in RISC keeping its CISC microprocessors